News & Announcements

February 11, 2016

AM Best Financial Stability Rating of A (Excellent)

A.M. Best & Company (Oldwick, NJ) has downgraded Mutual Assurance Society of Virginia’s financial strength rating to A (Excellent) from A+ (Superior) and the issuer credit rating to “a+” from “aa-”.  The outlook for all ratings has been revised to stable from negative.

A.M. Best stated that the Society’s elevated common stock investment leverage is inconsistent with their previous rating of A+ (Superior).   They further noted that our geographic risk concentration in the Virginia region was also a contributing factor in their downgrade decision.

Mutual Assurance Society of Virginia’s exceptionally strong capitalization uniquely positions it to not only meet the insurance needs of its member policyholders but to do so at a very reasonable price.  After 222 years of careful financial management, our large policyholder surplus relative to our premium writings (.179:1) affords us the opportunity to make a greater commitment to equity investment markets.   These markets, over time, have generated better returns than fixed income markets.   This allows us to continue our Perpetual Insurance model and to charge our member policyholders only modest annual assessments.  We remain firmly committed to this model, providing qualifying Virginia property owners with quality insurance protection at a very reasonable price.

The Society also maintains an A”” Unsurpassed rating from Demotech, Inc. Columbus, OH.